Financial Industry Still on Fiduciary Path, Despite DOL Rule Delay
We think the major trends that the rule accelerates remain firmly in place.
While it’s been reported that the U.S. Department of Labor has requested an 18-month delay in the implementation of the second phase of its fiduciary rule to July 2019 from January 2018, we see evidence that the U.S. financial industry has already begun reducing conflicts of interest between financial advisors and their clients.
The delay to the rule was largely expected, as President Trump directed the Department of Labor to restudy the effects of the rule. Additionally, extra time would be needed by financial services companies to implement the requirements of the rule if the Department of Labor decided to make material modifications.
Michael Wong does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.